Entrepreneurship Essay Example | Topics and Well Written Essays - 500 words - 5

Entrepreneurship - Essay Example 03), Buchanan and Vanberg (1991), and Littlechild (1986) to conduct an in-depth study of three of the most fundamental processes of entrepreneurship namely the creation, recognition and the discovery of the opportunity. For the recognition of opportunity, an entrepreneur should know the nature of the situation at hand whereas the distinction between opportunity creation and discovery activates the entrepreneur’s ontological curiosity to question the existence of opportunity. Differentiating between the three distinct forms of the processes of entrepreneurship helps understanding the context i.e. opportunity recognition for the application of the typical understanding of risk and rationality. The author finds that several unexplored dimensions of the link between risk and rationality are reflected in the selected process of entrepreneurship, each of which is a potential area for conducting further research. Knight (1921) calls this true uncertainty. The author comments upon num erous aspects of the claims made by Knight (1921). The use of probability theory for framing the risky decisions precedes the precursors of Knight’s claims. Knight’s emphasis upon the link between rationality and decisions to maximize the results of the statistical probability is consistent with the thinking that cultivated in the age of the Enlightenment of Europe. The author finds that the conventional perspectives of the risk and rationality are based on a lot of restrictive assumptions that contrasts with the exploratory nature of the innovative processes. In the latter part of the research the author identifies the insinuations of the process-contingent trait of the risk and rationality. The author asserts that entrepreneurs frequently switch among different rationalities rather than sticking to a particular kind of rationality. Entrepreneurs display various rationalities contrary to the conventional understanding of the risk and rationality as the supporting fact ors of the